How do I get out of this please?

sandralovescats

In July of 2005 I bought a new car on finance, a personal car loan, secured on the car from Capital.

Since being ill I need a car that is automatic - urgently.

On reading the car loan agreement to find out the penalties I got a shock!

If the car is traded-in etc within the first 24 months they want 70% of the original loan agreement as penalty.
Within 36 months it is 50% and 48 months 30%.

First of all this is extortionate and should be illegal.

More importantly I desperately need a car that is automatic - I am having problems with my left ankle, surgery is planned.

Has anybody any advice as to how I go about extricating myself from this horrendous contract?

Do you think if I send a letter and explain they will allow me to give the car back to them without any penalty at all?

The loan was for over £13000, the car is currently worth around £8000 on a trade-in. The total right now would be about £10400 owing + £9000 penalty


Please please help me!

sandralovescats

Somebody must have some advice? Please???

Bossyboots

I suspect you have received no responses because there doesn't appear to be anything you can do. You have agreed to the terms and conditions on signing the agreement.

There is a system under which you can hand the car back once half the payments have been made and nothing else will be owing but I can't remember if this applies to the type of loan you have. Perhaps someone else will join in and answer that. You don't say how long the loan is for though so I don't know if this is relevant to you at this point in any event.

From previous posters here, I think it highly unlikely they will take the car back without penalty. After all, th is is one of the ways they make their money. You won't know unless you ask, but if they did agree, make sure you get in writing an agreement to release you from the contract with no penalty so that it doesn't come back to haunt you later on.

sandralovescats

Thanks!

I thought that it was if you are on HP and have paid half of the payments that they couldn't take the car back?

The loan is over 60 months and I have paid 14 months.

The agreement does say that if I attempt to consolidate it, do an IVA with it, go bankrupt, or default on the payments that they will take the car back.

I am doing an IVA but without the car loan on it.

Last year the Government changed the law to stop companies applying hundreds of pounds in penalty for early payment, etc. This contract even has a clause in it to say that any new government legislation has no application to them as a Company!

This is a serious problem for me. I am not trying to pull the wool over anyone's eyes. It is down to medical issues. The problem with my ankle is chronic arthritis, I have been registered disabled and am on DLA. I am not putting this on. I am awaiting surgery to have my left foot reconstructed. The arthritis was first found on an x-ray in 1992, so if I had taken the insurance I would not have been covered anyway, since the Company would have said it was a pre-existing condition.

I will go and see a solicitor, I think.

Thanks for replying.

jonesMUFCforever

I have to ask then why you bought the car in the first place?
I know this question is of no help to you now but people have to be responsible for their own actions.

rog2

There must be something that can be done.
1. Can you p/x the car against an automatic car, by signing a new agreement?
2. Do you now qualify for help under the Motability scheme?
Perhaps it is worth going to your local CAB to see if there is a solution.
Good Luck.

sandralovescats

ejones999 wrote:

I have to ask then why you bought the car in the first place?
I know this question is of no help to you now but people have to be responsible for their own actions.

This problem I have now only decided to manifest itself around January of this year. Up until then I was going to the gym, doing step classes, etc.

sandralovescats

rog2 wrote:

There must be something that can be done.
1. Can you p/x the car against an automatic car, by signing a new agreement?
2. Do you now qualify for help under the Motability scheme?
Perhaps it is worth going to your local CAB to see if there is a solution.
Good Luck.

1. Not according to the contract, no. The same penalties apply.
2. Yes I would now qualify for motability

Unless writing to them and explaining my situation might help?

I think CAB are maybe a good idea. Thanks!

Bossyboots

I do wonder whether a letter from the CAB explaining your changed circumstances and your difficulties might get them to be a bit more compassionate and offer some solution. I think they will probably want proof of your problem though and it may be as well to have this ready to send with the first letter as otherwise it will just bat backwards and forwards.

sandralovescats

No problem. I am seeing the Orthopaedic Surgeon on Wednesday

rog2

I hope CAB will give you some advice. It is certainly true that contact from the, whether by letter or phone call, will usually carry more clout, as I have found out. I know it's not much help at the moment, but Car Finance can be one of the trickiest things to get out of. We are so taken in by the good points, eg low or zero interest, that we forget to check the small print, and Car Sales people are unlikely to bend over backwards to point out the pitfalls either.
Good luck.